Calling a time-out.

[Gary Jennings]

It has always been my interpretation that in order to grant a time out the ball must be is player possession-control before you grant the request from a player/head coach. Our local meeting is a buzz and spit 50-50 that you can grant a time-out while the ball is in the air being passed between two teammates (team control). I have always waited until the ball is caught/posessed by the recieveing teammate before putting air in the whistle and granting the time-out request.
I am looking @ 5.8.3.
Can someone help me here with a clarification and perhaps a case play or two to take back to my group?
Thankz DR J